Pillen pauses diesel taxes for Nebraska farm transport

Diesel-tax relief

Nebraska Gov. Jim Pillen signed two executive orders intended to lower transportation costs for the state’s agricultural producers. The first immediately suspends diesel taxes for 90 days for vehicles carrying Nebraska seasonally produced goods or livestock.

Agricultural workers can retain their fuel receipts and seek refunds for diesel taxes paid during the suspension. The order also allows highway-registered vehicles to possess, sell or use untaxed dyed diesel without state penalties during the period.

Pillen linked the temporary measures to higher fuel prices and the continuing effects of major wildfires in western Nebraska. Nebraska Agriculture Director Sherry Vinton said rising production costs are creating profitability challenges for row-crop farmers.

Higher vehicle weight limits

The second order allows vehicles transporting seasonal products or livestock to operate at up to 25% above current weight limits without additional permits or fees. Pillen said the change would let farmers carry fuller trailers without violating state restrictions.

Wahoo farmer Doug Bartek said diesel and fertilizer prices are creating uncertainty for agriculture. He said the orders would help but would not resolve all of the industry’s cost pressures.

Petition and federal request

A separate group, Make Nebraska Even Better, launched a proposed initiative for the 2028 ballot on the same day. The proposal would suspend all state motor-fuel taxes each year from Sept. 1 through Oct. 31, cap those taxes at 35 cents per gallon and restore a full tax exemption for off-road agricultural dyed diesel.

Organizer Eric Underwood said he had not communicated with Pillen’s office before announcing the petition.

Pillen also sent President Donald Trump a letter asking for a 90-day pause on diesel exports. He argued that a pause would help rebuild domestic diesel reserves and reduce costs for consumers.